Random thoughts about HBD

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         That's all the HBD interest I've earned from putting them in my savings account this year. It's not much, but it's definitely more than what most your banks are offering. There aren't many places where you could get $10+ of interest with less than $1000 deposited. Couple that with the @hbdstabilizer, HBD started to have semblance of a stable coin.

         The only downside is that Upbit seems to be the only major market that trades HBD. The worst part, they only pair with BTC. That part has always bothered me. It seemed counterintuitive to trade your BTC to buy a "stable coin". Well, I suppose when people like to break the peg on Upbit, it's a great way to "cheat out" more BTC. I would much prefer to see trading pair with USD or other stable coins down the road.

         Aside from the low circulation of HBD, the limited number of places to trade them doesn't help. Sometimes, holding HBD feels like holding a illiquid asset. I mean, is there even an attempt to market the 10% interest?

         What about regulations?

         Pegging HBD to USD has its downside. It's a direct invite for regulators because it's linked to a government fiat. That 10% interest might draw unwanted attention. I mean, it is competing with the banks, bond markets, etc. In the contrary, it could be a good thing. It would be free press for this place.

         Before anyone goes "DEXes and can't stop decentralization", it doesn't work like that. HBD is not on any notable DEXes with significant volume at this time. The moment Bittrex or Upbit receive a choke slam, there could be problems. Even Blocktrades is not above the law.

         At the same time, it's not like HBD has to peg itself to the USD. There are definitely other options out there in the world. I guess the witnesses will cross that bridge if we get there.

         Until then, enjoy that 10% interest. It may not be a bad place to bide your time in the upcoming bear market. Part of your time anyways, it's always better to diversify a bit. Not financial advice, though.

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28 comments
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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
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Pegging HBD to USD has its downside. It's a direct invite for regulators because it's linked to a government fiat.

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Yes?

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Oh yes! Sit quiet and don't tease the big boys. They are already talking about regulating crypto.

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Regulations aren't all bad. They can offer clarity.

The worst is not having clarity had have them go after people for gray areas.

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(Edited)

Keep in mind that Hive Backed Dollars are actually a contract that locks HIVE and then pays out '1 USD worth of HIVE' in the form of HBD.

At no stage is anyone left holding US dollars in escrow or the like.

The value is all generated from the HIVE token, native to the completely decentralised Hive network.

The US regulator has nobody to go after.

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The US regulator has nobody to go after.

They can always go after the exchanges, which aren't many. Break the liquidity, break the asset.

But yes, you are right, it doesn't involve escrow like those of Tether or USDC.

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They can go after US regulated exchanges, sure.

But in this case, they're nothing more than on/off ramps.

The Hive network itself would remain untouchable, with the creation of HBD continuing as normal.

Not to mention the fact that even if the US government restricted exchanges in that country from offering any HBD pairs, they would simply pop up in foreign jurisdictions.

For example, a Korean exchange would surely be more than happy to fill the global demand that would have been left.

The game has changed and it's now up to the regulators to change with it.

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But in this case, they're nothing more than on/off ramps.

I think you are grossly underestimating the value of these on/off ramps.

Not to mention the fact that even if the US government restricted exchanges in that country from offering any HBD pairs, they would simply pop up in foreign jurisdictions.

Let's focus on HBD here. This isn't BTC or other coins with massive demand elsewhere. The weakness of HBD has always been the number in circulation and actual marketplaces that exist for them.

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HBD was never really focused upon nor even pegged. It was always freely floating to whatever it was pumped to.

And there is an internal exchange that can always swap HBD to Hive which is on a few more exchanges.

You are right we need to spread things out but considering HBD was overlooked for years and only just got on the radar of people this year means we are doing well with it.

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My only chagrin is that I hope the recent attention is not too late to offset years of neglect.

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HBD is still stable during the pump this is very good and it seems that we are going on the right way

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That's definitely a huge plus from its wayward days.

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HBD are the dynamite that can make a lot of problems in the future. Special with pumps like today.

To much HBD = Haircut longterm = not worth 1$ anymore :D

I think the mechanic is not that strong gov would care about it.

1$ coin that worth 0,5$ :P

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Problem? Maybe, maybe not.

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50/50. Depends on the side you are :D

If you hold your "life savings" in a stablecoin that lost 50% of worth it's maybe not that cool.

Special because some Hive people advertise it as " risk free 10% stablecoin" :P

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You shouldn't put your life savings in an experimental blockchain. Definitely not risk free, the whole thing could blow up, HIVE as well as HBD.

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(Edited)

The internal market and conversion function both mean you can always exchange HBD for HIVE (and the other way too, albeit with a 5% fee). To cut off the path to HBD, exchanges would have to stop trading HIVE as well.

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True.

I just wanted a more direct way from fiat to HBD versus more taxable events.

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Sure, more exchange pairs would definitely be good, just pointing out that the alternative (including status quo) isn't no ability to exchange at all, rather more inconvenience and inefficiency.

I think there was a USDT pair on some small exchange (not listed on coinmarketcap) but never had much volume. Don't know if that still exists.

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Just wondering, doesn't HIVE have more trading pairs available? People could just change HBD into HIVE on the internal market or conversion before trading that out.

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It’s a matter of convenience and number of taxable events.

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It trades on Bittrex, as that's where I do my stuff. Annoyingly its not on Binance...

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at this point almost any press about Hive is good press and much needed exposure. Btw shouldn't you get 100 HBD interest for 1000 HBD locked up for a year?

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